President Trump signed an executive order on Thursday to create a government reserve for Bitcoin, along with the “digital asset reserve” in the cryptocurrency industry's latest embrace.
According to For orders, The US government will disrupt financial crimes and establish preparations while using bitcoin already seized by federal law enforcement.
Trump's Crypto and Artificial Intelligence (AI) Emperor David Sachs emphasized that the plan “is not on a dime for taxpayers.”
He said the US government is estimated to own around 200,000 bitcoins, but an audit has not been completed to confirm this number. The order directs “full accounting” for government digital assets holdings, Sachs said.
“The US does not sell Bitcoin deposited in reserves. It will be held as a valuable store,” Sachs wrote in X's post.
This order also establishes a digital asset stockpile consisting of digital assets other than Bitcoin. Like the reserves, these assets were confiscated in criminal or civil lawsuits, Sachs said.
“The government will not acquire additional assets in the stockpile beyond what was obtained through the forfeiture proceedings,” Sachs wrote. “The purpose of the stockpile is responsible stewardship of government digital assets under the Ministry of Finance.”
Under the order, the Ministry of Finance and Commerce are empowered to “develop budget-neutral strategies to acquire additional Bitcoin.”
Sacks emphasized that these strategies should not have incremental costs for American taxpayers. This is a previous concern due to crypto industry figures that fear that the reserve will increase taxes for Americans.
The order comes days after Trump suggested details of the crypto sanctuary. Sunday's announcement was filled with a combination of excitement and skepticism.
The president initially suggested that the reserves contain both Bitcoin and other digital assets, raising concerns among some industry players who argue that Bitcoin is the only one that has proven value. Bitcoin is the oldest and most popular cryptocurrency.
This order appears to try to appease people in the crypto space who have advocated strictly for Bitcoin Reserve, creating space for other new digital assets.
Trump, who once called Crypto a “scam,” has made a major change in his songs on the subject, pledging to make the US the “crypto capital of the world” on the campaign trail.
The president tapped various crypto advocates for the Cabinet and Management role and established the Presidential Working Group for the Digital Asset Market within the White House.
The Securities and Exchange Commission (SEC) also appears to have already changed its enforcement tactics, suspending or halting several probes on various crypto exchanges launched under the Biden administration.
The reserve is celebrated by many in the space, but the outlook sparked debate among the community earlier this week.
Part of the crypto world said that hills do not believe that having crypto and Bitcoin reserves has “strategic objectives” and that they cannot compare it to assets such as gold or oil.
The signature on Thursday night comes one day before the first crypto summit at the White House, where leaders from various industry gather in Washington.
The event is the culmination of years of pushes by the industry being taken seriously in Washington after a string of scandals shook the reputation of the space.
Trump's support for the industry was soon seen in the market after winning his reelection and then sending Bitcoin and other assets at months-long rally.
The market has since cooled, but is usually spiked amid actions and comments from Washington on the issue. The market surged on Sunday and Monday following Trump's social media posts on reserve.
